The
Senate has expressed surprise at a recommendation by the Nigerian Law Reform
Commission for a review of the Nigerian Foreign Exchange Act in order to
empower the Central Bank of Nigeria to jail people for up to two years or
fine them for 20 percent of the amount of the foreign currency held in their
possession for more than 30 days.
The Senate in a statement signed by its spokesperson, Senator Aliyu Sabi Abdullahi stated that with its focus on boosting investor' confidence in the nation's economy, such move as proposed by the Commission that will prevent investors from making free entry and free exit from the market will be outrightly rejected by its members.
The Senate in a statement signed by its spokesperson, Senator Aliyu Sabi Abdullahi stated that with its focus on boosting investor' confidence in the nation's economy, such move as proposed by the Commission that will prevent investors from making free entry and free exit from the market will be outrightly rejected by its members.
"The measure is disruptive and counter productive,
threatening to undermine many of the reform efforts already underway in the
legislature and by government ministries intended to boost investor
confidence.
“The Senate would
never pass such a punitive and regressive proposal. Overall, some of the
Commission’s recommendation has many sound attributes and could help Nigeria’s
investment climate. We believe the CBN should have the authority to
regulate the forex market and determine the exchange rate policy as already enshrined
in its enabling Act.
” A market-oriented exchange rate policy is the best recipe for guiding
the operations of the foreign exchange market. This will ensure the
supremacy of market mechanisms in efficiently allocating the scarce forex
resources", the Senate stated.
It
added:
“we will continue to work with the Executive to halt the worsening
recession and return to economic growth.”
The proposed changes are said to be intended to
help control capital flows and prevent foreign exchange from being taken out of
the country. Analysis of the proposed rules changes, that were posted on
the Commission’s website, states that “the amendments are necessary for
effective monitoring and control, and to ensure probity in foreign-exchange
transactions in Nigeria.”
Last September, the Senate spearheaded an economic agenda to pass key reform legislations to promote economic growth through greater public sector participation, boost investor confidence and create jobs
Also in June, the CBN was cheered for loosening its control over exchange rate policy in a bid to encourage investors to return to Nigeria and prevent capital flight. Hopes were high after the Nigerian government finally allowed the naira to float, as was recommended by domestic and international investment advisors. Currently, however, the markets do not reflect a loosening of CBN control over the forex market, leading to the emergence of multiple exchange rates.
Signed
Senator Aliyu Sabi Abdullahi
Chairman, Senate Committee on Media and Public Affair
Last September, the Senate spearheaded an economic agenda to pass key reform legislations to promote economic growth through greater public sector participation, boost investor confidence and create jobs
Also in June, the CBN was cheered for loosening its control over exchange rate policy in a bid to encourage investors to return to Nigeria and prevent capital flight. Hopes were high after the Nigerian government finally allowed the naira to float, as was recommended by domestic and international investment advisors. Currently, however, the markets do not reflect a loosening of CBN control over the forex market, leading to the emergence of multiple exchange rates.
Signed
Senator Aliyu Sabi Abdullahi
Chairman, Senate Committee on Media and Public Affair
No comments:
Post a Comment